Judge P. Kevin Castel of the United States District Court for the Southern District of New York approved a $12.7 billion settlement agreement between FTX, Alameda Research and the Commodity Futures Trading Commission, according to a court filing on Wednesday.

Defunct crypto exchange FTX and associated trading firm Alameda Research previously agreed on the settlement figure with the CFTC in July after months of negotiations, pending the consent order approval.

It ends the lawsuit the CFTC lodged against the exchange, former FTX CEO Sam Bankman-Fried and Alameda in December 2022, alleging their fraud caused customers to lose $8 billion. The agency initially pushed for a $52.2 billion claim.

As part of the settlement, the CFTC agreed it would receive nothing as long as FTX complies with …